TP ICAP Settles with FINRA for $80,000 Fine

TP ICAP Global Markets Americas settles with the Financial Industry Regulatory Authority (FINRA) by agreeing to pay an $80,000 fine. This settlement addresses the firm’s failure to establish and maintain adequate supervisory systems for compliance with securities regulations, including FINRA rules that prohibit potentially manipulative trading activities.

This violation spans from at least September 2020 until March 2025 and involves breaches of FINRA Rules 3110(a), 3110(b), and 2010. During this period, TP ICAP lacked a supervisory system capable of detecting potential spoofing and layering activities. For instance, from September 2020 until November 2023, the firm did not have any surveillance or supervisory review mechanisms in place to detect such activities. 

Although TP ICAP implemented a surveillance report in November 2023 to identify instances of potential spoofing and layering, it failed to establish written supervisory procedures detailing the report’s use and review process. However, by March 2025, the firm revised its written supervisory procedures to clarify the report’s description, the party responsible for its review, and the necessary actions and review frequency.

TP ICAP Settles with FINRA for $80,000 Fine

Furthermore, the firm’s surveillance parameters from September 2020 until March 2023 were excessively narrow, preventing the reasonable detection of instances where customers might have marked the close. 

In September 2020, TP ICAP revised its parameters for reviewing daily trading blotters but limited its surveillance for marking the close to transactions executed in the last five minutes of trading, comprising over 25% of that day’s trading volume. Consequently, this narrow focus caused the firm to miss red flags in 45 transactions. Additionally, from at least September 2020 until April 2022, TP ICAP’s surveillance parameters restricted its ability to identify potentially manipulative wash trades, as the firm only monitored trades occurring in the same millisecond. 

By doing so, it overlooked red flags in eight transactions. In April 2022, TP ICAP expanded its wash trade surveillance parameters. As a result of these violations, the firm received a censure, was fined $80,000, and must certify within 180 days that it has implemented an appropriate supervisory system to address these failures. Registered with FINRA since 1966, TP ICAP, headquartered in New York, employs approximately 515 registered representatives across eight branch offices.

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